The global wine market is projected to grow at a CAGR of 3.18% to reach US$146.820 billion by 2027, from US$117.936 billion in 2020.
With rapid urbanization and modernization, the disposable income of families is increasing. With increased disposable income, they tend to upgrade their living standard and make a shift toward attaining luxuries. Moreover, wine intake at business meetings tends to become normal and is also considered a status symbol. Along with it, wine also helps in reducing heart diseases, combating inflammation, and promoting gut bacteria. As per OIV (the International Organisation of Vine and Wine) records, the world’s wine consumption in 2020 was 234 million hectolitres (Mhl). USA, France, Germany, UK, and Italy are the five biggest wine-consuming countries across the globe.
Growing social culture and digitalization for formal or informal meet up is propelling the market growth
Millennials and Gen Z are currently under the influence of clubs, cafes, and nightlife culture. Increased digitalization and social media influence have made café culture a new normal. This is acting as a driving factor for the demand for alcoholic or non-alcoholic beverages in general. Along with it, after the COVID-19 pandemic, countries are taking up initiatives to reboot the tourism sector. This also has led to the expansion of the tourism industry, which further has encouraged the hotels to demand premium quality alcoholic beverages such as wine.
The market players are regularly analyzing the market trends and working on research and development to take up fruitful investment projects and make innovative product launches such as working on newer flavors and methods that will be helping in enhancing their product offerings.
Digitalization to influence market expansion
The digitalization era has also acted as a driving force for many businesses. The wine market is one of them. In today’s hectic times, people like to shop from the comfort of their homes. E-commerce platforms have always been helpful in providing a common platform to buy items, ranging from groceries to luxuries. Online platforms have enabled many businesses to launch their products online. For instance, in September 2022, IAG Loyalty announced that it would be launching an online line business called The Wine Flyer. The platform is being launched through a partnership with British Airways. The platform will be operating under a newly formed subsidiary of IAG Loyalty. The Wine Flyer will be focusing on an organized system of wines, beers, spirits, and non-alcoholic drinks. Along with that, it will also provide access to products served on British Airways flights, such as Teusner’s 'The Riebke' Shiraz. It will allow its users to use their Avios loyalty points for purchasing wine and using the same for collecting points from online wine purchases.
Market Key Developments
Europe is expected to hold a significant share during the anticipated period
The disposable income of European countries is steadily increasing due to rapid urbanization and modernization, which in turn is positively impacting people’s lifestyles. European countries hold a rich culture and therefore, tourists are inclined toward them. According to OIV, the European Union consumed 112Mhl wine in 2020. The stats have been stable since 2019. European Union single-handedly accounts for 48% of wine consumption. The countries are also known for wine around the globe. Owing to which countries in these regions trade heavily in wine. Moreover, the consumption in the EU has remained stable mainly due to the Italians who have increased their wine drinking by +7.5%. In order to keep up their share in the market, the players are expanding their reach in the form of investments, product launches, partnerships, and expansion projects. For example, chef Gordon Ramsay announced the formation of an alliance with Italian winemaker Alberto Antonini and benchmark Drinks to launch his own product line of Italian wines.
Frequently Asked Questions (FAQs)
Q1. What is the size of the wine market?
A1. Wine Market was valued at US$117.936 billion in the year 2020.
Q2. What will be the wine market size by 2027?
A2. The global wine market is projected to reach a market size of US$146.820 billion by 2027.
Q3. What are the growth prospects for the wine market?
A3. The wine market is projected to grow at a CAGR of 3.18% over the forecast period.
Q4. What factors are anticipated to drive the wine market growth?
A4. Growing social culture and digitalization for formal or informal meet up is propelling the wine market growth.
Q5. Which region holds the largest share of the wine market?
A5. Europe is expected to hold a significant share of the wine market during the anticipated period.
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. GLOBAL WINE MARKET, BY TYPE
6. GLOBAL WINE MARKET, BY DISTRIBUTION CHANNEL
7. GLOBAL WINE MARKET, BY GEOGRAPHY
7.2. North America
7.3. South America
7.4.3. United Kingdom
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.3. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. E. & J. Gallo Winery
9.2. Treasury Wine Estates Limited
9.3. Accolade Wines
9.4. The Wine Group
9.5. Constellation Brands
9.6. Maison Castel
9.7. Casella Family Brands
9.8. Concha y Toro
9.10. Davide Campari-Milano S.p.A.
E. & J. Gallo Winery
Treasury Wine Estates Limited
The Wine Group
Casella Family Brands
Concha y Toro
Davide Campari-Milano S.p.A.
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